• US: +1-408-610-2300
  • Toll Free: +1-866-831-4085
  • Login / Register
  • Home
  • » Consumer Goods
  • » Cigar and Cigarillos Market Size, Share, 2019-2025 | Industry Report
Cigar and Cigarillos Market Size, Share, 2019-2025 | Industry Report

Cigar & Cigarillos Market Analysis Report By Product, By Flavor, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17619497  |  Published: April 2020  |  No of Pages: 100
Format: Electronic (PDF)  |  Industry: Consumer Goods  |  Publisher: Grand View Research

Industry Insights

The global cigar and cigarillos market size was accounted for USD 16.99 billion, in 2018. The market is expected to grow with a CAGR of 3.1% during the forecast period, 2019 to 2025. The rise in the number of luxury hotels with cigar lounges is the primary reason driving the market. Owing to the prohibition against cigarette smoking in public places, the demand for lounges and bar are getting traction in luxury hotels. For example, premium hotels such as The Wellesley, Bulgari Hotel and Corinthia Hotel in London allow cigar smoking. 

Changing smoking preferences led to the introduction of new flavor based cigars. Flavors such as chocolate, tea, vanilla and wine are getting traction among young consumers. Few flavors such as swisher sweet and white owl are among the most popular flavors dominating the market. However, flavored products such as Java, Acid and Tatiana have immensely contributed to the growth of flavored products in the recent past. Considering the growing popularity of flavor-based cigars, leading companies are spending a significant amount on the R&D activities to introduce innovative flavors in the market.

china cigar & cigarillos market

China is one of the leading regions for premium cigars, and it is expected to continue its dominance in the upcoming years. Cigar in China is considered as a luxury tobacco product meant for rich consumers. However, the introduction of cost-effective products and the rise in the number of young millionaires are supplementing the market growth in the country. Additionally, premium cigar manufacturers from Cuba are focusing on strengthening their market presence in China through strategic collaboration.

Cuban cigar sales registered a record in China domestic market as manufacturer Habanos S.A revenues increased by 12% in 2017. The company signed an agreement with China National Tobacco Corporation in the same year to boost its premium cigar sales. The export of hand-rolled cigar is popular in Cuba and Habanos S.A markets hand-rolled cigar through its 700 establishments in the international market.

India is also expected to witness the surge in the demand of premium Cuban cigars owing to rise in the number of cigar clubs in metropolitan cities such as Delhi, Mumbai, Bengaluru, Chennai and Kolkata. The rising influence of western culture among youth and increasing brand awareness among rich consumers are expected to drive the demand in the Indian market. However, lack of effective marketing owing to stringent government regulations is expected to restrain market growth.

Product Insights

Among various product types, the mass cigar was the most popular with a market share of 82.3%, in 2018. Mass cigars are machine-made, and cost-effective as compared to premium ones, which makes them a popular choice among young consumers, especially among high school going students. In addition, the availability of mass cigar in various flavors such as mint, chocolate and vanilla is attributing to its popularity.

The premium cigar segment is projected to register the highest growth rate during the forecast period. The rise in the number of luxury hotels and bars offering premium cigar products is the key driver of this segment. Moreover, premium products are hand-made and are quite popular in matured markets such as the United States, the United Kingdom and China. The introduction of innovative flavors and unique taste is further proliferating the demand for this segment. Rise in sales of premium products through the online sales channel is expected to positively affect market growth.

Flavor Insights

By flavor type, tobacco/no flavor accounted for the largest market share, in 2018. This segment is expected to continue its dominance over the forecast period. The total worth of this segment was USD 12.05 billion, in 2018 and it is expected to grow with a CAGR of 3.0% during the forecast period. No-flavor tobacco products followed by chocolate and vanilla are popular among the NORDIC population.

Flavor based products are expected to grow with a significant CAGR over the forecast period. The growing popularity of flavor products among young consumers is expected to drive this growth. Additionally, flavor products are expected to get traction among female consumers. The fruit-based flavor is the most popular among consumers; however, there has been a significant rise in sales of other flavors such as tea, wine, vanilla and Jazz among others in the recent past.

Regional Insights

North America was the largest market, in 2018, owing to rising demand for premium cigars from luxury hotels and bars. As reported by the Cigar Association of America, nearly 330 million cigar sticks were shipped to the United States, in 2017.

Nicaragua was the largest exporter of premium cigars followed by the Dominican Republic. The unique taste of Nicaragua’s tobacco is popular among United States consumers. However, stringent regulatory guidelines by the United States Food and Drug Administration (FDA) regarding new product launch and high taxes levied on cigar products are expected to hinder the market growth.

Global cigar & cigarillos market

Europe is expected to grow with a CAGR of 1.9% during the forecast period. The growing number of women consumers is projected to lead the European market growth. However, increased taxation of tobacco products and social stigma associated with tobacco consumption are likely to impede the market growth in the region.

Asia Pacific is expected to grow with a CAGR of 8.9% during the forecast year, 2019 to 2025. China was the leading region in terms of market share and the country accounted for 48.5% of the market share, in the region. The demand for Cuban cigar is getting traction in the Asia Pacific. The cigar is considered a luxury product in China and often drinks, and meals accompany it. Moreover, the rise in young population purchasing capacity in emerging countries such as China and India is positively affecting the cigar and cigarillos market growth.

COVID-19 Impact Insights

The demand for cigar & cigarillos has witnessed a noticeable decline owing to the lockdowns imposed by government across different parts of the globe following the outbreak of COVID-19. Cigar & cigarillos are non-essential products and stores selling these products were forced to close to arrest the growth of the pandemic. This has led to hoarding and black marketing of cigar and cigarillos during the pandemic. However, with the reopening of stores selling these products, their demand is anticipated to witness significant traction. Companies operating in the market are focusing on the introduction of cigar in new flavours to attract consumers.

Cigar & Cigarillos Market Share Insights

The availability of a wide range of flavors is making the market diversified. Leading competitor countries are Honduras, Nicaragua, Brazil and the Dominican Republic. Manufacturers are emphasizing on the introduction of innovative products with improved tastes and flavors. Various regional players are making their entry with unique product designs. For instance, recently introduced the Swiss brand “Davidoff” is getting traction among consumers. The brand is known to provide unique quality products. Moreover, organic cigar brands, name “Plasencia”, were introduced by Nicaragua to attract Chinese consumers.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million & CAGR from 2019 to 2025

Regional scope

U.S., Germany, U.K., Spain, France, China, Australia

Report coverage        

Revenue forecast, company share, competitive landscape, growth factors and trends

Country Scope

U.S., Germany, China, India, and Brazil

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global cigar & cigarillos market report on the basis of product, flavor and region:

• Product Outlook (Revenue, USD Million, 2015 - 2025)
    • Mass
    • Premium

• Flavor Outlook (Revenue, USD Million, 2015 - 2025)
    • Tobacco/No Flavor
    • Flavored

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K
        • Spain
        • France
    • Asia Pacific
        • China
        • Australia
    • Central & South America
    • Middle East & Africa

What questions do you have? Get quick response from our industry experts. Request More information
Key questions answered in the report include
key questions
We also offers customization on reports based on specific client requirement.
Request for Customization

Choose License Type

Research Assistance

Ryan Manuel
Ryan Manuel

Research Support Specialist, USA

  1. Phone: +1-408-610-2300
  2. Toll Free: +1-866-831-4085
  3. Email: [email protected]
  • World's largest premium report database
  • Transparent pre & post sale customer engagement model
  • Unparalleled flexibility in terms of rendering services
  • Safe & secure web experience
  • 24*5 Research support service
  • 100% Secure Payments
  • Our Promise
  • 100% Service Assurance
  • Market Monitoring
  • Service Flexibility
  • 24X5 Care available